The BTC/USD Quotes Are Consolidating. The Potential for Growth Remains

Technical indicators:

Market Cap, billion: $137,85

% chg. over the week: +19.12

% chg. over the year: 595.71

52 wk range: 1,141 – 19,666

The BTC/USD rate has stabilized after a significant increase last week. It should be recalled that previously the main cryptocurrencies showed rapid growth after well-known investors from Wall Street got interested in them.

The current news feed is fairly calm. The US-based cryptocurrency exchange, Kraken, announced that it will stop its services for Japan residents for an indefinite period due to rising costs of doing business there. However, the representatives of the exchange do not deny that they may return to the Japanese market in the future.

At the moment, the BTC/USD quotes on the Bitstamp exchange, which is based in Luxembourg, are being traded near $8,200.

The current technical pattern on BTC/USD

Support levels: 7800.00, 7200.00, 6500.00

Resistance levels: 8400.00, 9000.00, 10000.00

Currently, the BTC/USD quotes are consolidating. The key support and resistance levels are: 7800.00 and 8400.00, respectively. The signals of the indicators are different:
- the price has fixed above 50 MA and 200 MA;
- the MACD histogram is located in the negative zone.

Nevertheless, the cryptocurrency is tending potentially to further recovery. We recommend opening positions in the direction of the current trend.

Trading recommendations

If the price fixes above the resistance level of 8400.00, further growth of the BTC/USD quotes is expected. The immediate goal of profit taking is the offer zone of 9000.00-9200.00. In the medium term, the currency may reach a round level of 10000.00. When following the positions, we recommend using a trailing stop.

Alternative option. If the price fixes below the level of 7800.00, it is necessary to look for entry points to the market to open short positions. The movement is tending potentially to 7400.00-7200.00.

by
JustForex,
2018.04.17

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.